The World Bank and IMF initiate a new reform package

The article critically examines the World Bank's and IMF's new approach to poverty alleviation and debt relief, as it is to be carried out via the Poverty Reduction Strategy Papers (PRSP) and the Poverty Reduction and Growth Facility (PRGF). It asks: Will this new approach bring substantive change to the IMF and World Bank? Does it address core concerns voiced by critics? What are some initial assessments from developing country civil society organizations?Conclusions about the process of developing PSRPs include:civil society in the borrowing countries needs information and transparency about the new processconsultation with civil society must go beyond information dissemination, to a genuinely participatory process in which the recommendations of non-governmental actors, including traditionally marginal groups, can influence policyConclusions about the concept and content of PSRPs include:The IMF’s new poverty reduction objective potentially consititutes a significant change of policy, however it it remains to be seen how significant the change is in practiceThe commitment to social development could serve only to extend the Fund’s mandate and increase the reach of its controversial policy advice at the expense of existing bodies such as the UNDPHow the poverty reduction strategies in PSRPs and traditional structural adjustment policy prescriptions are to be made consistent with each other remains to be seenThe World Bank and IMF documents describing PRSP show some evidence of willingness to be flexible in making macroeconomic prescriptions. Just how flexible will be seen as the process unfolds country by countrySocial and environmental impact assessments should be made mandatory for all macroeconomic and structural adjustment loans, so that it will be possible to answer empirically the question whether a given PRSP would actually reduce poverty, or notHow much change actually takes place will depend, in large part, on activists, civil society organizations, and government policy-makers around the world